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To prevent from issues when/if the SQL server fails is it a good idea to create a DNS entry to point to the SQL server instead of using the actual server name when configuring SharePoint 2013?

In the past, I've always created SQLDNSENTRY to point to SQLSERVER01 and then used SQLDNSENTRY in all farm configuration steps.

Is this still a good practice?

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We are using the same way, we have DNS entry which points to SQL server. We prefer the DNS entry upon SQL alias. For DNS entry, in case of failover down timer is higher then sql alias.

You can go either SQL Alias or DNS entry. You can read the below blog for nice comparison: https://junfengzhang.com/2014/08/16/dns-alias-vs-sql-server-alias/

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